#China: European Commission imposes definitive anti-dumping duties on steel

The European Commission today (8 February) imposed definitive anti-dumping duties on corrosion resistant steel from China. The duties range from 17 – 28% and cover a five-year period, writes Catherine Feore.

The EU found that Chinese producers were dumping the product on the EU market, a finding that already led to imposition of provisional duties in August 2017.

Corrosion resistant steel is mainly used in the construction industry, for mechanical engineering, in the production of welded pipes and tubes and in the manufacturing of domestic appliances. The value of EU market for corrosion resistant steel is estimated for €4.6 billion, 20% of which has been supplied by Chinese producers. Today's measures will counter the downward pressure on sales prices that has been causing financial problems for EU producers, based mostly in Belgium, France, Poland and the Netherlands.

The European Steel Association (EUROFER) reported (6 February) that the outlook for steel in 2018 has improved with the global recovery. Axel Eggert, Director General of EUROFER said:

“Prospects for the continued recovery of EU steel demand are positive. The expected strength of most steel-using sectors bodes well for the demand side of the EU steel market. The supply side situation could, however, continue to be negatively affected by import distortions.”

The EU stated that the global surplus in steelmaking capacity has driven down steel prices to unsustainable levels in recent years and had a damaging impact on Europe’s steel sector, as well as related industries and jobs. The steel sector is a vital industry for the European Union's economy and occupies a central position in global value chains, providing jobs for hundreds of thousands of European citizens.

The EU is using the full potential of its trade defence toolbox to ensure a level-playing-field for its producers and their ability to maintain jobs in the sector. Fifty three measures are now in place on steel and iron products, including 27 on products coming from China.

In March 2016 the Commission issued a Communication presenting a series of measures to support competitiveness of the EU steel industry. Enhanced use of trade defence tools was one of the pillars of the strategy. In addition to that, the Commission engaged in the Global Forum on Steel Excess Capacity that agreed last November for an ambitious package of policy solutions to tackle the pressing issue of global overcapacity in the steel sector.

Background

According to Brussels-based European Trade Association, European steel industry is a world leader in innovation and environmental sustainability. It has a turnover of around €160 billion and directly employs 320,000 highly-skilled people, producing on average 160 million tonnes of steel per year. More than 500 steel production sites across 24 EU Member States provide direct and indirect employment to millions more European citizens. Closely integrated with Europe’s manufacturing and construction industries, steel is the backbone for development, growth and employment in Europe.

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